Kuwait Fund supports Mohmand Dam Hydropower Project

The Ministry of Economic Affairs (MoEA) and Water and Power Development Authority (WAPDA) have recently signed a Subsidiary Loan Agreement (SLA) worth $25 million for the Mohmand Dam Hydropower Project. This agreement, inked at the Ministry of Economic Affairs, was attended by key officials including the Secretary of MoEA and the Chairman of WAPDA. The Ambassador of Kuwait in Pakistan, Nassar Abdulrahman Jasser Al Mutairi, also graced the ceremony.

This funding is part of a larger commitment by the Kuwait Fund, totaling $100 million, to support the Mohmand Dam Hydropower Project. The financing will be distributed in four equal loans of $25 million each. The initial loan agreement between Pakistan and the Kuwait Fund was signed in Kuwait on June 3, 2024.

The Mohmand Dam project is a significant infrastructure initiative with multiple objectives. It is designed to produce around 2,862 GWh of electricity annually, with an installed capacity of 800 MW, which will help bridge the current energy deficit. The dam will also create a storage reservoir holding approximately 1,594 million cubic meters of water, ensuring consistent irrigation supply. Standing at 213 meters, the dam will serve as a crucial flood control measure, reducing flood risks and safeguarding against damages.

Moreover, the project will provide 13.32 cubic meters per second of drinking water from the dam reservoir to Peshawar city in Khyber Pakhtunkhwa, meeting the city's demand for a reliable water supply. The Secretary of MoEA emphasized that the SLA signing signifies a significant advancement in the Mohmand Dam project, facilitating the establishment of essential infrastructure that will deliver long-term benefits in power generation, irrigation, flood management, and water distribution.

The signing of the Subsidiary Loan Agreement between MoEA, WAPDA, and the Kuwait Fund marks a crucial milestone in the development of the Mohmand Dam Hydropower Project. With the financial support secured, the project is set to address key challenges in energy production, water management, and flood control, benefiting both the local communities and the broader region. The successful implementation of the project will not only enhance Pakistan's infrastructure but also contribute significantly to sustainable development goals.